Warsh Fed Turns Hawkish

Kevin Warsh made his debut as Federal Reserve chair with a tougher-than-expected message on inflation, signaling that the central bank may raise interest rates rather than cut them despite President Donald Trump’s calls for cheaper borrowing. Fed policymakers left the key rate unchanged but indicated elevated inflation could persist, putting a possible hike on the table as soon as this summer. Warsh’s stance marked a sharp hawkish turn from what many investors expected from the Trump appointee and former Morgan Stanley banker. The shift means consumers and businesses hoping for lower financing costs may have to wait longer as the Fed prioritizes bringing prices down.